FAQ

All new investments are referred to the Technical Team as soon as the SIPP or SSAS has been established. Checks are carried out on the following:

Anti-money laundering checks

Compliance with HMRC requirements

Independent valuations (if appropriate)

Company accounts

Scheme/Investment Documentation

Online credit checks (N.B. this is a soft imprint check and will not affect your credit score)

Bankruptcy

As this checking process begins early, most, if not all, due diligence should have been carried out in full by the time all funds have been received to enable to the investment to complete. Provided that satisfactory documentation has been provided, any outstanding issues will be identified early in order to manage expectations.
If we are required to seek professional advice from an external source such as a solicitor, the timescales will be dependent on their response times.

All investments within a SIPP or SSAS undergo due diligence procedures by Morgan Lloyd.
The Technical team carries out research and compliance checks on the companies, individuals & investments in question to ensure compliance with the relevant regulations. When all requirements have been met, the ultimate decision is made by the Directors of Morgan Lloyd.
Usually this is carried out on a case by case basis so if you would like us to look at a specific investment please let us know and we will be more than happy to discuss this with you.

The time scale following set up of any of our products depends largely on third parties, such as transferring pension providers, valuers and banks and therefore it is impossible to quote specific timescales. It is also dependent on the investments chosen. However on average the process usually takes between 2-8 weeks following initial set up. Certain investments, for example commercial property, will take longer than this, we will however keep you updated as to the progress of your chosen arrangement with us.

Under the Finance Act 2004 all schemes are either registered pension schemes (for tax purposes) or non registered pension schemes; there is no longer a discretionary approval regime. SIPPs and SSASs are an “investment regulated” registered pension scheme. An investment regulated pension scheme is also known as a “member-directed scheme”, i.e. where the scheme members have control over the investments and scheme assets. For such schemes there are strict rules in place in all dealings between the connected parties.

As with all investments there is an element of risk and the level of risk depends on how solid the business is and what the anticipated future position is likely to be. A business partner is in a privileged position and would be able to make an informed decision based upon their knowledge of their own business. Morgan Lloyd are not authorised to provide financial advice and you should discuss any concerns you may have with your adviser.

Intellectual Property (IP) is an allowable investment and most IP can be held within a SIPP arrangement. When the SIPP purchases the IP from the company or partnership liquidity is created within the business. A lease will be put in place between the business partners and the pension scheme and this creates a substantial investment return for the SIPP arrangement. Another benefit for the client is that once the IP is held within the pension scheme it is also protected from creditors in the event of insolvency. Each proposed IP purchase will be reviewed on an individual basis.

A SIPP/SSAS may borrow up to 50% of the net asset value of the arrangement for any purpose, for example to pay benefits to a retiring member or to make investments such as the purchase of commercial property. (Note that there can be no further borrowing above the 50% limit, for example to fund VAT on a property purchase)

No. Generally any investment in residential property will be subject to punitive tax charges and would therefore be a prohibited investment. Transitional provisions may apply to some schemes in existence prior to 6th April 2006.

This information reflects the regulatory and taxation situation as it affects pensions at the time of publication in April 2017 and is provided to the best of our knowledge. It is not a complete representation of the pensions legislator landscape and is for guidance and information purposes only. We cannot be held responsible for any errors, omissions or subsequent legislative changes.